India has reduced the Goods and Services Tax (GST) on a range of plant-based food and beverage items, including milk and meat alternative products, as part of a wider reform.

The changes were announced by India’s Prime Minister, Shri Narendra Modi, with a goal to ‘enhance the quality of life of every last citizen’.

The tax rate for a wide variety of food and beverage products, including plant-based milk drinks such as soya milk, and texturised vegetable protein (TVP) products, has been reduced from 12-18% to 5%, effective from 22 September 2025.

The changes are part of a broader tax reform, approved by the GST Council and led by the finance minister Nirmala Sitharaman. Other household items such as cosmetics and homeware are also covered within the reform.

The cuts will align the GST for plant-based alternatives more closely with that applicable to traditional meat and dairy products – fresh cow’s milk currently is not taxed in the country, while most conventional meat and dairy products fall into the 0-5% range.

The Plant Based Foods Industry Association, a non-profit organisation aiming to accelerate plant-based innovation in India, has praised the move as a ‘landmark step’ that supports the growth of the plant-based industry in the country.

In a LinkedIn post, the Association wrote: “A special thanks to the Economic Division, MoFPI (Ministry of Food Processing Industries) for patiently hearing our requests and ensuring our representations reached the concerned bodies – making this milestone possible”.